15 Feb 2007
Dubai: Prices of Indian mutton will gradually return to levels of Dh16 to Dh17 per kilo after the Indian Government lifted its export ban yesterday, say leading UAE food retailers.
The meat, a staple in the Indian diet, soared past the Dh20 per kilo mark as supplies dwindled when the ban was imposed last August 21 by the Director-General of Foreign Trade, part of the Indian Government's Ministry of Commerce.
The Indian Government has lifted its six month export ban on Indian mutton, signalling the all-clear for UAE retailers to restock their shelves with the popular meat.
Gulf News has learnt that the Indian Government has informed the Bombay High Court of its decision.
Earlier, meat exporter Barkat Exporter Mumbai filed a petition against the ban, claiming the government gave no sound reason for its action.
According to the notification, exports of goat or lamb carcasses (Indian mutton) were banned as a precautionary measure against foot-and-mouth disease. There was no restriction on boneless mutton.
Food retailers in the UAE scrambled to make up the supply shortages with extra imports from Pakistan, Somalia, Ethiopia and Sudan. Kamal Vachani, director of the Al Maya Group, which runs a major UAE supermarket chain, said the company has placed its first 1,000 kilo order for this Saturday.
"This is great news for retailers and for consumers who have desperately missed having a wide variety of mutton to choose from. We can't anticipate the exact price on Saturday, but I'm hoping to get a good price for our customers."
Officials at Emke Group, the company which runs stores including its flagship Lulu Hypermarket chain throughout the region, imported 15 to 20 tonnes of Indian mutton per day before the ban and priced Indian and Pakistani-imported mutton at approximately Dh16 per kilo in the UAE.
"Now Pakistani meat costs Dh25 a kilo and Australian mutton, which was on the market for Dh 17 to Dh19 a kilo, costs Dh22 a kilo," said Abdul Saleem, group general manager, Emke Group.
"We'll try to get our volumes back to standard levels as soon as possible. The market will stabilise and prices should return to normal fairly shortly."
He admitted the ban caused a slump in sales. It also hit sales at Great Emporium Exports and Imports, Sharjah.
However, a company official said the price hike was not solely to blame.
"Most of our customers, including non-Indians, are very fond of Indian mutton - that's why our sales have gone down by more than 50 per cent," said the official.
By Robert Ditcham
Gulf News 2007. All rights reserved.
